HOME IMPROVEMENT/RENOVATION CONTRACT

This Home Improvement/Renovation Contract ("Contract ") is made on _________________, between

Construction Company, Inc. ("Contractor") and _____________________________________________
__________________________________________________________________________, ("Owner").

Owner certifies that there is no construction Lender for the project (_____); or the Construction
Lender(s)' for the Project description(s) and address(es) is/are:

☐ Lender 1
☐ Lender 2

The Home Improvement / Renovation Site

Address 1: __________________________________________________________________________
Address 2: __________________________________________________________________________
City: ____________________________________________________, California ZIP: ______________

I. Description of the Project and Description of the Significant Material to be used and Equipment to
be Installed ("Project")
a. For a price identified below, Contractor agrees to complete home improvement/renovation
for the Project agreed by the Owner.
b. Description of the work, materials and equipment to be installed:

(See "Addendum A" for more details)

II. Project Price.
a. In addition to any other charges specified in this Contract, Owner agrees to pay Contractor
the amount of $ _____________ for completing the work described as the Project.
b. Initial payment of $ 450.00 will be due upon signing this Contract. This amount will be
refundable to Owner, only in the event that the Owner does not qualified for full/partial
financing, Project is not fully funded or Owner cancels Contract within the three business

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Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less

days, as referred in the Notice of Cancellation clause under the terms of this Contract.

c. Except as otherwise provided in this Contract, Contractor may retain the initial payment
(contained herein) as a non-refundable deposit if this Contract is terminated for any reason
other than default by Contractor or for the reasons stipulated in Section II.b

III. Financing.
a. Owner shall have sole responsibility to secure funding and/or financing for the Project
described above in Section I.
b. Owner further acknowledges that any engagement, contract, loan terms and conditions are
negotiated only between Owner and Lender.
c. Owner acknowledges that Contractor does not offer financing for the Project under the terms
of this Contract and furthermore, releases Contractor of any and/or all liabilities arise from
any dispute between Owner and Lender.
d. In case Owner is applying for a loan in order to fund Project fully or partially, Owner will
provide the Contractor with evidence of final loan approval and Lender's contact information
to verify and further to comply with Lender's guidelines for Project's future disbursements.
Owner hereby authorizes and directs any Lender on the Project to furnish Contractor with full
information on undisbursed loan proceeds when requested by Contractor.
e. Upon Owner's initials in this paragraph, Contractor's obligations and responsibilities under this
Contract are subject to Owner's ability to procure funding for this Project. In the event that
Contractor performed work in advance, prior to Owner's failure to obtain necessary funds
or secure financing for the Project, Contractor may terminate Contract under the basis
contained herein with a three (3) days written notice along with an invoice, detailing the scope
of work done to date. Payment for services rendered by the Contractor are due and payable
immediately by Owner under the terms of this Contract.
Owner's Initials (_____)

IV. Approximate Start Date.

Contractor shall consider substantially commence Project on approximately _______________,
subject to approval of permits, plans, any unexpected delays by the City, County, architectural
designs or structural development.

V. Approximate Completion Date.

Contractor shall substantially complete Project on or before _____________,. It is understood that
completion of the Project ends when Owner may use and enjoyed the benefits of the Project for
the purposes for which they were intended initially.

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 LIST OF DOCUMENTS INCORPORATED INTO THIS AGREEMENT

Change Order Form Notice of Cancellation CSLB Information

Addendum A - Description of Work Addendum B - Payment Schedule Liens & Waivers

VI. Scope of Work.

a. Contractor shall furnish all materials, equipment and shall supervise and direct all necessary
work, including but are not limited to, methods, techniques, sequences and procedures
required to complete the Project in compliance with the terms and conditions under this
Contract.
b. Owner will not interfere with or permit others to interfere with, stop, hinder, or delay
completion of the Project by Contractor or Subcontractors except as provided under this
Contract.

VII. Payment Schedule.

a. Owner will pay to Contractor The Project price according to the payment schedule described
in Addendum B (attached hereto)
b. All payments are due and payable within 3 days of billing issued.
c. The payment schedule describes in detail each phase of the Project and its respective fee.
d. If financing is involved, Contractor will remediate and coordinate disbursements with Lender
accordingly.

VIII. Final Payment.

a. Contractor will submit an application for final payment to Owner when the Project has been
completed in compliance with the Contract documents. If Owner agrees that Project has
been completed, payment is due to Contractor for the entire unpaid balance of the Contract
amount (including any retainage). In case of Project being financed by a Lender, Contractor
shall use same remedy described in Section VII-d.
b. Making of final payment constitutes waiver of all Claims by Owner against Contractor except
those Claims previously made in writing and delivered to Contractor and those obligations
otherwise provided by this Contract or by Operation of Law.
c. If completion of the Project is delayed unreasonably at no fault of Contractor, Contractor shall
be entitled to final payment for all work completed without prejudice to the right of
Contractor to complete the work at a later date and without prejudice to the right of Owner
to make Claims against Contractor for any defects in work completed.

IX. Representations by Contractor.

Owner shall disclose Contractor all conditions known to Owner regarding the property where the
Project is conducted which might significantly increase the cost or cause a potential delay. These
conditions include, but are not limited to, unsuitable soil conditions, property boundaries,

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 easements, encroachments, defects, prior defective work of others, earlier attempts to do
similar project, and obligations imposed by Government. Contractor is entitled to rely on the
Owner's accuracy of this information but will perform due diligence to the best of his abilities in
order to proceed with the project in compliance with State, County and City regulations.

X. Owner's Rights and Responsibilities.

Owner shall grant all access to the premises of residence where the scope of work is to be
developed, secured pet(s) and children (if applicable), clear any debris (where present) and
provide utilities to Contractor when needed at no cost. Owner shall assume responsibility for
additional fees, if required, due to the removal of unknown utilities, machinery, hazardous
materials, underground conditions (including but are not limited to rock formations, cesspools,
gas lines, electrical conduits, water pipes, septic tanks, drainage pipes, etc),asbestos, toxic waste
or any other obstruction to Contractor in order to perform.
Owner shall be responsible for any fees incurred by any/all permits for the Project at hand. Owner
also is responsible for the cost of any testing or inspection derived by the plans and orders of any
public entity, as well as of any fees created due to property assessments in relation to the Project
or any other significant price changes to any/all materials used in connection to the Project.

XI. Extra Work and Change Orders.

Contractor is authorized to make minor changes in the Project which are in the best interest of
Owner , does not materially alter the quality or performance of the Project, and does not affect the
cost or time of performance, and comply with applicable Laws, codes, ordinances and regulations.
Contractor shall inform Owner of each minor change made in the Project.

Extra work and Change Orders become part of the Contract once the order is prepare in writing
and signed by the parties prior to commencement of any work covered by the new Change
Order. The order must describe the scope of the Extra Work or Change, the cost to be added or
subtracted from the Contract, and the effect the order will have on the schedule of progress
payments and completion date(s).

Notice required by California Business and Professions Code § 7159(e)(3)

Owner may not require a Contractor to perform Extra Work or Change Order work without
providing written authorization prior to the commencement of any work covered by the new
Change Order. Extra Work or a Change Order is not enforceable against Owner unless the Change
Order also identifies all of the following in writing prior to the commencement of any work
covered by the new Change Order:
(1) The scope of work encompassed by the order,
(2) The amount to be added or subtracted from the Contract, and
(3) The effect the Change Order will have on progress payments or the completion date.
Failure of Contractor to comply with the requirements of this paragraph does not preclude the
recovery of compensation for work performed based upon legal or equitable remedies designed to
prevent unjust enrichment.

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 (4) A notice with the heading "Mechanics Lien Warning" contained herein.

XII. Contractor Claims.

If Contractor claims that any instruction, drawing, act or omission of Owner or any representative
of Owner, or any agency of government, increases costs to Contractor, requires extra time or
changes the scope of work, Contractor shall have the right to assert a Claim for such costs or time.
Owner releases Contractor of any obligation, damages and/or liability in regards to any delay
caused by any involuntary act by the City, County, State or Owner himself.

XIII. Arbitration.
a. Any Dispute or Claim arising out of or relating to this Contract or contract warranty or the
breach thereof which cannot be resolved by mediations shall be settled by arbitration
administered by the American Arbitration Association under its Construction Industry
Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered
in any court having jurisdiction thereof.
b. Anything in this Contract notwithstanding, any Claim arising out of or relating to the Contract
documents or warranty of thee breach thereof may, at the option of the Claimant, be filed
in any Small Claims Court having jurisdiction, in lieu of an arbitration proceeding.

NOTICE: Owner agrees that in the event of any dispute arising out of the arbitration of disputes
provision, decided by neutral arbitration as provided by California Law, Owner declines to
exercise any rights you might have to proceed in litigating the dispute in a Court or Jury Trial.
By initialing in the line below this paragraph, you are giving up your judicial rights to
discovery and appeal, unless those rights are included in the arbitration of disputes provision.
If you refuse to submit to arbitration after agreeing to this provision, you may be compelled
to arbitrate under the authority of The Business Professions Code or other applicable Laws.
Your agreement to this arbitration is voluntary.
I have read and understand the foregoing and agree to submit disputes arising out of the
arbitration of disputes provision to neutral arbitration.
Notwithstanding the foregoing, Contractor reserves its mechanic's lien rights and all rights
of perfection thereof pursuant to California Civil Code § 8400.
Owner's Initials (_____)

XIV. Liens and Waivers.

"Mechanics Lien Warning"
Anyone who helps improve your property, but who is not paid, may record what is called a
mechanics' lien on your property. A mechanics' lien is a claim, like a mortgage or home
equity loan, made against your property and recorded with the county recorder.
Even if you pay your Contractor in full, unpaid subcontractors, suppliers, and laborers who
helped to improve your property may record mechanics' liens and sue you in Court to
enforce the lien. If a Court finds the lien is valid, you could be forced to pay twice or have a
Court officer sell your home to pay the lien. Liens can also affect your credit.

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 For ways to prevent liens, visit CSLB's website at www.cslb.ca.gov or call CSLB at 800-321-CSLB
(2752).

Notice required by California Business and Professions Code § 7159(c)(4).

When payment is made for any portion of the work performed, Contractor shall prior to any further
payment being made, furnish to Owner a full and unconditional release from any claim or mechanics'
lien pursuant to § 3114 of the Civil Code for that portion of the work for which payment has been made.

XV. Variance Tolerance.

Contractor reserves the right to purchase materials, accessories, fixtures and other variables
to match, to the best of his ability: colors, textures and finishes to match Owner's preferences.
Although, variations of the same might occur, Owner assumes responsibility for such variations.
Discoloration, cracking and other imperfections on plaster, stucco, cement and any other
material exposed to the elements may deteriorate in appearance over time for which Contractor
has no control. Owner acknowledges that these materials are not guaranteed for evenness on
form and/or color and further understands that there is no warranty covering these materials and
preventing deformation as indicated herein.

XVI. No Inability to Perform; Valid Execution.

Owner warrants and represents that it has no knowledge of any inability to perform its
obligations under this Contract. The execution and delivery of this Contract and the contracts
contemplated hereby by Owner have been duly and validly authorized by all necessary action.
This Contract will be a legal, valid and binding obligation of Owner, enforceable against Owner in
accordance with its terms.

Information regarding the Contractors State license Board (CSLB).

CSLB is the State Consumer Protection Agency that licenses and regulates construction
contractors.
Contact CSLB for information about the licensed contractor you are considering, including
information about disclosable complaints, disciplinary actions and civil judgments that are
reported to CSLB.
Use only licensed contractors. If you file a complaint against a licensed contractor within the
legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use
an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only
remedy may be in civil court, and you may be liable for damages arising out of any injuries to
the unlicensed contractor or the unlicensed contractor's employees.
For more information:
Visit CSLB's website at www.cslb.ca.gov
Call CSLB at 800-321-CSLB (2752)
Write CSLB at P.O. Box 26000, Sacramento, CA 95826.

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 Notice of Three-Day Right to Cancel

Date of Transaction: ______________

You, the buyer, have the right to cancel this Contract within three business days. You may cancel
by emailing, mailing, faxing, or delivering a written notice to the Contractor at the Contractor's
place of business by midnight of the third business day after you received a signed and dated copy
of the Contract that includes this notice. Include your name, your address, and the date you
received the signed copy of the Contract and this notice.
If you cancel, the Contractor must return to you anything you paid within 10 days of receiving the
notice of cancellation. For your part, you must make available to the Contractor at your residence,
in substantially as good condition as you received it, any goods delivered to you under this
Contract or sale. Or, you may, if you wish, comply with the Contractor's instructions on how to
return the goods at the Contractor's expense and risk. If you do not make the goods available to
the Contractor and the Contractor does not pick them up within 20 days of the date of your notice
of cancellation, you may keep them without any further obligation. If you fail to make the goods
available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so,
then you remain liable for performance of all obligations under the Contract.
My signature below acknowledges receipt of this Notice of Three-Day Right to Cancel and two
copies of the form Notice of Cancellation.

___________________________________ ________________
Owner's Signature Date

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Notice of Cancellation (California Business & Professions Code § 7159) - Contract Date: _____________
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the Contract or sale, and any negotiable
instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice,
and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good condition as when
received, any goods delivered to you under this Contract or sale, or you may, if you wish, comply with the instructions
of the seller regarding the return shipment of the goods at the seller's expense and risk.
If you do not make the goods available to the seller and the seller does not pick them up within 20 days of the date of
your notice of cancellation, you may retain or dispose of the goods without any further obligation.
If you fail to do so, then you remain liable for performance of all obligations under the Contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written
notice (no later than the midnight of __________________) to

Construction Company, Inc.

123 Street St
City, CA 90000
I hereby cancel this transaction:

___________________________________ ________________
Owner's Signature Date
------------------------------------------------------------------------------------------------------------------------------------------

Notice of Cancellation (California Business & Professions Code § 7159) - Contract Date: _____________
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the Contract or sale, and any negotiable
instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice,
and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to the seller at your residence, in substantially as good condition as when
received, any goods delivered to you under this Contract or sale, or you may, if you wish, comply with the instructions
of the seller regarding the return shipment of the goods at the seller's expense and risk.
If you do not make the goods available to the seller and the seller does not pick them up within 20 days of the date of
your notice of cancellation, you may retain or dispose of the goods without any further obligation.
If you fail to do so, then you remain liable for performance of all obligations under the Contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written
notice (no later than the midnight of __________________) to

Construction Company, Inc.

123 Street St
City, CA 90000
I hereby cancel this transaction:

___________________________________ ________________
Owner's Signature Date

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 MISCELLANEOUS PROVISIONS

1. Contractor's Provisions / Disclaimers.

a. Owner acknowledges and understands that Contractor has the right, and under its sole
discretion, to subcontract any portion of the Project specified hereunder.
b. The Project proposed to be undertaken by Owner on the property is a private development.
Contractor has no interest in, responsibility for, or duty to third persons concerning any of
said improvements. The Owner shall exercise full dominion and control over the property,
subject only to the limitations and obligations of the Owner contained in this Contract or in
the approvals of the Project.
c. Nothing contained in this Contract, or in any document executed in connection with this
Contract, shall be construed as creating a joint venture or partnership between the Contractor
and the Owner.
d. Contractor carries commercial general liability, workers' compensation insurances and is legally
bonded, as required by the Laws of the State of California under the Contractors State License
Board for the protection of the Contractor and Owner during progress of the Project.

2. Good Faith and Fair Dealing.

The parties shall cooperate with each other and act in good faith in complying with the provisions
of this Contract.

3. Indemnity.
Owner agrees to indemnify and hold Contractor and its agents, employees, and officers harmless
from any and all liability, losses, damages or expenses incurred by the nature of this Project,
including but not limited to surface, mold, asbestos, lead paint, contaminants, toxic waste, damage
or loss of equipment through the duration of said Project.

4. Severability.
If any portion, condition, provision or term of this Contract is to any extent declared illegal,
otherwise invalid or unable to enforce, all other remaining terms, conditions and provisions
contained in this Contract shall remain in full force and effect.

5. Additional Terms and Conditions.

Additional terms and conditions can be attached as addendum(s) to this Contract upon mutual
consent of the parties and hereby incorporated herein by reference and made part of this Contract.

5. Entire Contract Agreement.

This Contract, including the preamble paragraph(s), recitals and exhibits, constitute the entire
understanding and agreement between the parties with respect to the subject matter contained
herein.

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 CHANGE ORDER FORM

DATE OF REQUEST: ________________

REQUEST ORDERED BY: __________________REQUEST ACCEPTED BY:_____________________

PROJECT SITE ADDRESS: __________________________________________________________

Change Orders (upon previous consent of the parties) are hereby modified and amended as
described below:
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All change orders are subject to possible additional fees (if stipulated herein) and a new
completion date (if indicated in this form) and are incorporated into and governed by the terms
and conditions of this Contract.

_______________________________ _______________________________
OWNER CONTRACTOR

_________________ _________________
DATE DATE

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 ADDENDUM A

DESCRIPTION OF THE PROJECT AND DESCRIPTION OF THE SIGNIFICANT MATERIALS TO BE

USED AND EQUIPMENT TO BE INSTALLED (SCOPE OF WORK)

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______________________________________________________________________________
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ADDENDUM B

LABOR AND/OR SERVICES TO BE PERFORMED AND/OR MATERIALS AND/OR EQUIPMENT TO

BE SUPPLIED BY CONSTRACTOR AND SUBCONTRACTORS

PROGRESS AMOUNT
Contract Execution - Initial Deposit $450
Preliminary designs and Plans approved $
Plans Completed $
Site Inspection $
Demolition Process $
Foundation - Water Lines - Gas Lines $
Framing $
Rough $
Drywall $
Insulation $
Finishes -Furnishings $
Final Inspection $
TOTALS $

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